0194: CONFERENCE REPORT (Date Completed: 5-27-13) - FY 2013-14 GENERAL GOVERNMENT BUDGET

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FY 2013-14 GENERAL GOVERNMENT BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

General Government Budgets Total Gross and GF/GP Appropriations
	FY 2012-13 Year-to-Date	FY 2013-14 GOV'S. REC.	Change from Year-to-Date	Percent Change from Year-to-Date
Gross Appropriations................................................................................................	$4,318,903,100	$4,433,136,800	$114,223,700	2.6%
GF/GP Appropriations...............................................................................................	$1,013,727,700	$1,052,945,600	$39,219,900	3.9%
Full-time Equated Employees (FTEs).........................................................................	7,722.7	7,631.7	(91.0)	(1.2)%


		FY 2013-14 SENATE REC.	Change from Year-to-Date	Percent Change from Year-to-Date
Gross Appropriations................................................................................................		$4,447,726,700	$128,823,600	3.0%
GF/GP Appropriations...............................................................................................		$1,070,885,500	$57,157,800	5.6%
FTEs .........................................................................................................................		7,597.7	(125.0)	(1.6)%


		FY 2013-14 HOUSE REC.	Change from Year-to-Date	Percent Change from Year-to-Date
Gross Appropriations................................................................................................		$4,290,796,400	($28,818,900)	(0.7)%
GF/GP Appropriations...............................................................................................		$906,153,800	($107,821,900)	(10.6)%
FTEs .........................................................................................................................		7,596.7	(126.0)	(1.6)%


		FY 2013-14 CONFERENCE REC.	Change from Year-to-Date	Percent Change from Year-to-Date
Gross Appropriations................................................................................................		$4,459,313,500	$140,410,400	3.3%
GF/GP Appropriations...............................................................................................		$1,071,945,500	$58,217,800	5.7%
FTEs .........................................................................................................................		7,617.5	(105.2)	(1.4)%

See Individual Highlight Sheet for Department Detail

FY 2013-14 GENERAL GOVERNMENT BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year to Date:

Items Included by the Senate and House

1. Bill Structure. The Governor recommended an omnibus bill for government operations with a separate article for each department. The General Government budgets were not aggregated in the Governor's recommendation. Some of the General Government boilerplate is included in Article 20 of the Governor's recommendation which would apply to all of the appropriations in the omnibus bill. Article 20 also includes required reports of the estimated statewide totals for total State spending and payments to locals (Sec. 20-201) and operating fund revenues and balances (Sec. 20-301). The Senate and House maintained the current bill structure.

2. Michigan Health Savings Fund. The Governor recommended a boilerplate appropriation of $103.0 million GF/GP in FY 2013-14 to the proposed Michigan Health Savings Fund. The Governor recommended using this fund for future Medicaid costs; however, there is no boilerplate that describes the proposed fund. The Senate and House did not include. (Sec. 20-208/Sec. 211a)

Conference Agreement on Items of Difference

3. Deleted General Sections. The Governor deleted the following general sections: information technology work project authorization (Sec. 207), purchasing requirements regarding consideration for buying from American, Michigan, and veteran-owned firms (Sec. 209), purchasing requirement regarding deprived and depressed areas (Sec. 210); retention of reports by departments (Sec. 212), prohibit casino ownership (Sec. 213), Department of Technology, Management, and Budget user fees (Sec. 214), prohibit employee discipline for speaking with a legislator or legislative staff (Sec. 215), prohibit use of General Fund money when Federal funds are available (Sec. 217), prohibition on using appropriations to administer a committee or obtain contributions for a committee as defined in the Michigan Campaign Finance Act, MCL 169.203 (Sec. 220), policy change report (Sec. 221), require departments to follow-up on savings proposals from the Legislative Auditor General (Sec. 229), FTE reporting (Sec. 231), and outcomes report (Sec. 232). Senate concurred in deleting information technology work projects (Sec. 207), information technology user fees (Sec. 214), limitations on administering a committee (Sec. 220), intent language on FTEs and FTE reporting (Sec. 231), and outcomes identification and reporting (Sec. 232) and retained the remaining sections. The House retained information technology user fees, FTE spending language and reporting, limitations on administering a committee, and information technology works projects. Conference concurred with the Senate to delete these sections except retaining FTE spending language and reporting. (Sec. 231)

4. Appropriation to the Budget Stabilization Fund. The Governor recommended a boilerplate appropriation from the General Fund to the Countercyclical Budget and Economic Stabilization Fund (BSF) of $75.0 million GF/GP in FY 2013-14. The section also reports the statutory calculation to determine the amount of any required payment to the Fund. According to this calculation, no pay-in or payout is required in FY 2013-14. The Senate did not include a BSF deposit in FY 2013-14. The House deposited $50.0 million GF/GP in the BSF in FY 2013-14. Conference concurred with the Governor. (Sec. 211)

5. Roads and Risks Reserve Fund. Conference created the Roads and Risks Reserve (RRR) Fund in the State Treasury. It appropriated $230.0 GF/GP to the new fund in FY 2013-14 and specified that the funds may be spent upon appropriation. One-half of the reserve funds are available for appropriation for roads effective October 1, 2013. The language states the intent of the legislature that the balance of the reserve funds will be appropriated for roads effective February 1, 2014 if those funds have not been appropriated for other purposes prior to that date. Interest earnings from the RRR go to the General Fund. The RRR will not lapse, but carries forward. (Sec. 211b)

6. Department Scorecard. The Governor added language to direct the departments to maintain a publicly accessible website that shows a scorecard that lists, tracks, and updates metrics that represent the Department's performance. The Senate concurred. The House did not include. Conference concurred with the Senate. (Sec. 2-219/Sec. 219)

7. Limitations on Contract Approval. Senate added a requirement that prior to approval of any contract in excess of $1.0 million or issuing request for proposals (RFP) for such a contract, a department or agency is required to issue and receive a request for information (RFI) or request for qualifications (RFQ), provide the results to the Legislature, and post a summary of the results on the department's or agency's webpage. The House did not include. Conference modified to require an RFI or RFQ to be considered for any contract over $5.0 million. (Sec. 235)

8. Intent Language on Retirement Costs. The Senate added a statement of intent that the FY 2014-15 budget should identify normal retirement costs and legacy retirement costs by line item. The House did not include. Conference concurred with the Senate. (Sec. 1202)

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

FY 2013-14 ATTORNEY GENERAL BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$85,082,500

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Remove One-time Payments. The Governor eliminated funding for one-time lump sum payments to State employees in FY 2012-13. The Senate and House concurred.	(1,025,900)
2. Economic Adjustments. Includes $2,054,400 Gross and $800,500 GF/GP for OPEB and $518,600 Gross and $195,200 GF/GP for other economic adjustments. The Senate and House concurred.	2,573,000
Conference Agreement on Items of Difference
3. Operations. The Governor recommended increasing the operations line by $2,124,200 to $80,627,700 to reflect the costs of legal services provided pursuant to the current memoranda of understanding between the Attorney General and the Department of Human Services (DHS) and the Department of Licensing and Regulatory Affairs. This increase would be funded from interdepartmental grants from the departments. The Senate concurred. The House reduced the operations line by $217,400, which is 0.75% of the GF/GP revenue in the line. The Conference concurred with the Senate.	2,124,200
4. Fraud Prevention Activities for DHS. The Governor recommended $500,000 and 3.0 full-time equated (FTE) employees to investigate and prosecute fraud in the programs offered by DHS. The Senate and House concurred. The Conference reduced by $167,000 in accordance with decisions in the DHS budget.	333,000
5. Information Technology (IT). The Governor recommended $1,448,400 for IT including an increase in IT charges for wireless infrastructure, bandwidth expansion, and the Microsoft enterprise agreement. The Senate concurred. The House reduced by $8,600. The Conference concurred with the Senate.	53,100
6. Child Support Enforcement. The Governor and Senate approved $3,427,800 for child support enforcement. The House made a reduction of $6,400. The Conference concurred with the Senate.	0
7. Public Safety Initiative. The Governor and Senate recommending funding of $902,800 for this project to assist prosecutors in Flint, Saginaw, Pontiac, and Detroit in reducing the number of outstanding warrants. The House reduced by $8,600. Conference concurred with the Senate.	0
8. Prosecuting Attorneys Coordinating Council. The Governor and Senate recommended $2,074,300 for PACC. The House reduced by $10,500. The Conference concurred with the Senate.	0

Total Changes.....................................................................................................................	$4,057,400
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$89,139,900
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 ATTORNEY GENERAL BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Items Included by the Senate and House

1. Line Item Structure. The Governor separated the General Government departments into separate articles within his proposed budget. The budget for the Attorney General is in Article 2. The Governor combined the existing seven line items into two lines, one for operations and one for Prosecuting Attorneys Coordinating Council. Fund source details would not be included. The Senate and House maintained the current bill structure.

2. Boilerplate Structure. The Governor moved boilerplate from the FY 2012-13 general sections that applied to all General Government budgets to the Article for the Department of Attorney General. These sections included:

Report on total State spending for the Department. (Sec. 2-201)

Definitions. Many were eliminated due to the deletion of fund source detail. (Sec. 2-203)

Report on out-of-state travel. (Sec. 2-216)

Prohibition on outside legal services. (Sec. 2-226)

Restricted Revenue Report. (Sec. 2-218)

Lapse Report. The Governor changed the report date from November 15 to November 30. (Sec. 2-217)

The Senate and House maintained these sections as general sections that apply to all of the departments in the bill.

Conference Agreement on Items of Difference

3. Use of Litigation Expense Reimbursements. The Governor expanded the use of a limited amount of litigation expense reimbursements to allow them to be used for the payment of salaries and support costs. Currently these funds can be used for payment of court judgments, settlements, arbitration awards, and attorney fees and certain litigation costs. As in the current year, a maximum of $500,000 could be appropriated from litigation awards for all of the named purposes. The Senate concurred. The House did not include. Conference concurred with the Senate. (Sec. 2-308/Sec. 308)

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

FY 2013-14 CIVIL RIGHTS BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$14,765,500

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Division on Deaf and Hard of Hearing. The Governor added $100,000 GF/GP and 1.0 full-time equated (FTE) position for an employee on leave who is returning from military service. This would increase the line item to $771,300 in FY 2013-14. The Senate and House concurred.	100,000
2. Hispanic/Latino Commission of Michigan. The Governor recommended an additional $54,000 GF/GP to increase the line item to $255,600 in FY 2013-14. This would support the Commission's work to enhance the abilities of Michigan Hispanics by improving their economic stability, education, achievement, and participation in government, business and the community. The Senate and House concurred.	54,000
3. Remove One-time Funding. The Governor removed funding for one-time payments to employees in FY 2012-13 required by contract. The Senate concurred.	(128,900)
4. Economic Adjustments. Includes $60,800 Gross and $48,200 GF/GP for OPEB and $340,800 Gross and $279,900GF/GP for other economic adjustments. The Senate concurred.	401,600
Conference Agreement on Items of Difference
5. Operations. The Governor and Senate included operations funding of $12,683,300. The House reduced to $11,876,700 due to a reduction of $556,600 and a transfer of $250,000 to a new line for the Michigan Women's Commission. Conference concurred with the Senate which provided economics only.	0
6. Michigan Women's Commission. In the current year the operations of the Michigan Women's Commission are funded from the department's operations line. The salary for the director of the Michigan Women's Commission is part of the unclassified line. The Senate maintained the funding for the commission in the operations line. The House transferred $250,000 to a separate line item for the Michigan Women's Commission. Conference included funding in operations line.	0
7. Information Technology. The Senate included $667,900 for information technology. The House reduced by $9,400. Conference concurred with the Senate.	6,100

Total Changes.....................................................................................................................	$432,800
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$15,198,300
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 CIVIL RIGHTS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Items Included by the Senate and House

1. Line Item Structure. The Governor separated the General Government departments into separate articles within his proposed budget. The Civil Rights budget is in Article 3. The Governor combined the existing 6 line items into 1 line for civil rights operations. Fund source details would not be included. The Senate and House maintained the current bill structure.

Report on total State spending for the Department. (Sec. 3-201)

Report on out-of-state travel. (Sec. 2-216)

Prohibition on outside legal services. (Sec. 3-226)

Restricted Revenue Report. (Sec. 3-227)

Lapse Report. The Governor changed the report date from November 15 to November 30. (Sec. 3-228)

The Senate and House retained the current language and bill structure.

Conference Agreement on Items of Difference

3. Department Scorecard. The Governor added language to direct the Department to maintain a publicly accessible website that shows a scorecard that lists, tracks, and updates metrics that represent the department's performance. The Senate concurred. The House did not include. The Conference included in General Sections. (Sec. 2-233/Sec. 219)

4. State Transparency Reporting. The Governor required the Department to cooperate with the Department of Technology, Management, and Budget to maintain a searchable website of spending, vendors, job specifications, wage rates, and FTE data that is freely available to the public. Currently, DTMB is directed to maintain this website statewide. The Governor deleted the current requirement to update the website at least quarterly. The Senate retained current language. The House did not include. The Conference included in General Sections. (Sec. 2-235/Sec. 206)

5. Department Report. The House added a requirement for a detailed report that would cover the following items:

Detailed description of departmental operations
Detailed description of subunits in the department; responsibilities, positions, revenue, and spending for each subunit.
Number of complaints by type.
Average cost per complaint investigation and average investigative time spent per complaint.
Percent of complaints that are meritorious and worthy of investigation or settlement and the percentage of complaints that have no merit.
List of amounts awarded to claimants.
Expenditures on complaint investigation and enforcement.
Complaint investigations closed per FTE for the past 5 years.

The report would be due November 30 and cover data for the prior fiscal year. The Conference concurred with the House. (Sec. 404)

6. Notification Prior to Filing Federal Complaints or Reports. The House required the department to notify the Office of the State Budget, the Senate and House appropriations committees, and the House and Senate fiscal agencies prior to submitting a report or complaint to the U.S. Commission on Civil Rights or other federal department. The Conference concurred with the House. (Sec. 405)

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

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FY 2013-14 EXECUTIVE BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$4,887,900

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Removal of FY 2012-13 One-Time Funding. Governor eliminated the FY 2012-13 one-time appropriations for State employee lump-sum payments. The Senate and House concurred.	(58,700)
2. Executive Office. Governor included a 2% increase to reflect actual costs of operation. The Senate and House concurred.	97,800
3. Economic Adjustments. Includes $0 for other post-employment benefits (OPEB) and $43,000 for other economic adjustments.	43,000
Conference Agreement on Items of Difference
4. Unclassified Salaries. The Conference added funding to the unclassified position's line item for salaries and wages.	400,000

Total Changes.....................................................................................................................	$482,100
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$5,370,000
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 EXECUTIVE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year to Date:

1. There previously were no boilerplate sections for the Executive Office. The Governor added one general section listing the total State spending from State resources and the payments to local units of government. The Senate and House moved to General Section 201. (Sec. 8-201)

Date Completed: 5-27-13 Fiscal Analyst: Joe Carrasco, Jr.

FY 2013-14 LEGISLATURE BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$129,610,200

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Auditor General - Removal of FY 2012-13 One-time Funding. Governor eliminated the FY 2012-13 one-time appropriations for State employee lump-sum payments. The Senate and House concurred.	(270,900)
2. Auditor General - Augmented Funding. The Governor increased funding so that the Auditor General can enhance audit oversight and service delivery, including the annual Comprehensive Annual Financial Report (CAFR). The Senate and House concurred.	250,000
3. Auditor General - Technical Adjustment. The Governor moved boilerplate authorization that allows the Auditor General to receive and expend funds for additional audits to the line items section in Part 1. Though this increased the total appropriation, this is NOT NEW funding as previous boilerplate language allowed for the receipt and expenditure of these funds. The Senate and House concurred.	1,255,200
4. Legislative Adjustment. The Governor increased funding by a total of 11.6%. Funding will primarily be used to cover increased other post-employment benefits (OPEB) and other unfunded retirement costs. These increased costs affect only Legislative staff as current Legislators are not eligible for pensions or retirement health care benefits. The Senate and House concurred.	12,896,800
5. Economic Adjustments - Auditor General. Includes $92,400 for OPEB and $540,000 for other economic adjustments.	632,400
Conference Agreement on Items of Difference
6. Auditor General - Information Technology (IT) Auditors. The Senate and House added $1.2 million in additional funding for the Auditor General to hire additional auditors to perform IT audits. The Conference reduced the funding by $800,000.	400,000
7. Michigan Veterans' Facility Ombudsman. The House added funding to create an Office of the Michigan Veterans Facility Ombudsman within the Legislative Council to investigate complaints against the Michigan Department of Military and Veterans Affairs or at a Michigan veterans' facility. The Conference did not include.	0

Total Changes.....................................................................................................................	$15,163,500
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$144,773,700
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 LEGISLATURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year to Date:

Items Included by the Senate and House

1. Total State Spending. The Governor added one general section listing the total State spending from State resources and the payments to local units of government. (Sec. 11-201) Senate and House retained as Sec. 201.

2. Re-numbering of Sections. Sections of boilerplate that have been retained in the Governor s budget are re-numbered accordingly for Article 11. The Senate and House retained current-year format for the budget.

3. Date Changes. The Governor extended the work project dates to September 30, 2018, for Property Management and Legislative Automated Processing. The Senate and House concurred with the Governor. (Secs. 606 and 607)

Conference Agreement on Items of Difference

4. Veterans' Facility Ombudsman. The House added new language creating the Office of the Michigan Veteran's Facility Ombudsman and specifies duties and responsibilities of the Ombudsman. The Conference did not include.

Date Completed: 5-27-13 Fiscal Analyst: Joe Carrasco, Jr.

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FY 2013-14 STATE BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$220,669,300

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Removal of FY 2012-13 One-time Funding. Governor eliminated the FY 2012-13 one-time appropriations of $1.5 million for employee lump-sum payments, $150,000 for Executive Direction and $600,000 for Central Operations. Senate and House concurred.	(2,294,400)
2. Anatomical Gift Registry. Governor, Senate, and House included funding to promote organ donation.	50,000
3. Microsoft Enterprise Agreement. Governor included funding to upgrade the Department's current Windows XP operating system with the Windows 7 operating system as the XP system will no longer be supported by Microsoft after April 8, 2014. The Senate and House concurred.	53,400
4. Center for Shared Solutions. The Governor included funding to cover increased staffing costs associated with this program which provides base geospatial mapping services to State departments and agencies as well as local entities. The Senate and House concurred.	39,000
5. Transportation Administration Collection Fund (TACF). Governor, Senate, and House adjusted the source of funding from this fund to reflect actual revenue.	(8,000,000)
6. Fund Shift. The Governor replaced Michigan Transportation Fund (MTF) funding with GF/GP due to the capped amount of MTF funds that can be transferred to the Department. The shift increases GF/GP expenditures by $606,300 while having a zero effect on the gross appropriation. The Senate and House concurred.	0
7. Olympic Fundraising Plate. Governor, Senate and House eliminated this line item as the Department no longer collects the fee for this license plate.	(75,700)
8. Assigned Claims Assessments. The Governor eliminated this funding as the services provided regarding assigned claims (uninsured drivers) was transferred to a private entity on January 1, 2013, per P.A. 204 of 2012. Senate and House concurred.	(1,098,600)
9. Driver Look-Up Fees. Gov. included the additional revenue resulting from the $1 increase in the fee from $7 to $8 for each driver record that is requested. Senate and House concurred.	4,700,000
10. Economic Adjustments. Includes $661,700 for other post-employment benefits (OPEB) and $4.3 million for Department economic adjustments.	4,938,300
Conference Agreement on Items of Difference
11. Contractual Services. Governor and Senate increased funding for costs associated with the Department's servicing of over 20 million customer documents. The House did not include Conference included the increased funding.	500,000
12. Wireless Infrastructure and Bandwidth Expansion. Governor and Senate included funding to upgrade the State's wireless infrastructure and to expand bandwidth to accommodate the ever-increasing use of wireless devices around the Capitol and State departments and agencies. House reduced GF funding by $4,900. Conference concurred with Senate.	67,600

Total Changes.....................................................................................................................	($1,120,400)
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$219,548,900
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 STATE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year to Date:

Items Included by the Senate and House

1. Re-numbering of Sections. Sections of boilerplate that have been retained in the Governor s budget are re-numbered accordingly for Article 15. The Senate and House retained current-year format for the budget.

2. ATM. Governor included definition for ATM. (Sec. 15-203) Senate and House retained as Sec. 203.

3. Out-of-State Travel Report. Governor included new language requiring the Department to report to the Legislature detailing the Department's out-of-state travel expenses. (Sec. 15-216) Senate and House retained as Sec. 216.

4. Public Scorecard and Metrics. Governor included new language requiring the Department to maintain a publicly accessible website that provides a scorecard that identifies, tracks, and regularly updates key metrics. (Sec. 15-233) Senate and House retained as Sec. 219.

5. Assigned Claims. Governor removed language allowing the Department to receive and expend funds regarding the settlement of assigned claims (uninsured motorists) as this service will now be done through a private entity per P.A. 204 of 2012. The Senate and House concurred with the Governor. (Current Law Sec. 702)

6. Driver Look-Up Fees. Governor included language increasing the fee from $7 to $8 for each driver record that is requested. The Senate and House concurred with the Governor. (Sec. 703)

7. Business Application Modernization (BAM) Project. The Governor removed language requiring the Department to report the total amount of funds spent on the BAM project from its inception. The Senate and House retained this section. (Sec. 716b)

8. Buena Vista Branch Office. Requires the Department to maintain a full service branch office in Buena Vista Township. The Governor removed this section. The Senate and House retained this section. (Sec. 718)

Conference Agreement on Items of Difference

9. Branch Office Closings. The Senate added an exemption from the required notification to the Legislature when a branch office closes, relocates, or consolidates, for branch offices that consolidate or relocate within the same local unit of government. The House did not concur with the Senate change. The Conference retained. (Sec. 714)

10. General Fund Expenditures. Requires the Department to use restricted funds before using general fund dollars. Senate: Concurred with Governor and removed language. House: Retained current year language. Conference did not include.

Date Completed: 5-27-13 Fiscal Analyst: Joe Carrasco, Jr.

FY 2013-14 TECHNOLOGY, MANAGEMENT, AND BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

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FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$1,142,973,600

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Removal of One-Time Funding. Governor, Senate and House excluded FY 2012-13 one-time funding of $4.7 million for employee lump-sum payments; $10.0 million for special maintenance; $7.0 million for space consolidation and $4.0 million for Teacher Evaluation Pilot Project.	(25,680,200)
2. Microsoft Enterprise Agreement. Gov. included funding to upgrade the Department's current Windows XP operating system with the Windows 7 operating system. Senate and House concurred.	1,423,600
3. Information Technology (IT) - Alignment of IDG Funding. Governor aligned its IDG funding with enacted FY 2013 appropriations for all departments. Senate and House concurred.	4,385,700
4. IT Adjustments. Governor increased funding in IT appropriations in various departmental IT line items. The Senate and House concurred.	3,051,300
5. Motor Vehicle Fleet. Gov. increased funding to account for higher fuel, maintenance, and vehicle leasing costs. Senate and House concurred.	1,500,000
6. Professional Development Funds. Governor included funding to provide professional development and trainings for NEREs per contract requirements. Senate and House concurred.	200,000
7. Civil Service Fund Shift. Gov. transferred 4.0 FTE positions and associated funding to the Department of Human Services to provide trainings specific to DHS. Senate and House concurred.	(465,600)
8. Military Retirement Program. Gov. increased funding for Military Retirement Program to cover unfunded costs associated with prefunding of pensions. Senate & House concurred. Conf. concurred with Senate & House.	826,100
9. Economic Adjustments. Includes $2.2 million other post-employment benefits (OPEB) and $10.8 million for Department economic adjustments.	12,980,200
10. Other Changes. Miscellaneous adjustments were made to various line items, including: a net zero SWCAP adjustment resulting in a negative adjustment to GF/GP funding of $481,000; a negative $120,000 adjustment for accounting services for the MSP; and an increase of $300,000 for Administrative Services to hire 1.0 FTE; $1.0 million for MSP mobile computing, $936,500 for geospacial mapping.	2,116,500
Conference Agreement on Items of Difference
11. Wireless Infrastructure and Bandwidth Expansion. Governor and Senate included funding to upgrade the State's wireless infrastructure and to expand bandwidth. House reduced funding by $63,500. Conference concurred with Senate.	3,163,900
12. Regional Prosperity Grants. Gov. included $5.0 million in one-time funding for these grants. House eliminated the entire one-time funding of $5.0 million while the Senate funded the grants at $1.0 million. Conf. funded at $2.5 million.	2,500,000
13. Target Agreements. Conf. included $500,000 for project management; $600,000 for Labor Market Information Strategies; $300,000 for increased fringe benefit costs; $2.0 million for litigation costs anticipated by the Department to be incurred in FY 2013-14; $2.0 million for increased cyber security.	5,400,000
14. Public-Private Partnership. Conf. transferred from Treasury the spending authority for a new line item for Public Private Partnerships.	1,500,000
15. One-Time Appropriations. Gov. included the following one-time funding: $1.5 million Delta County bridge removal; $10.0 million for special maintenance for State-owned facilities; $21.3 million for Technology Investments; and $100 for construction authorization of $20.2 million for SEOC Project. Conference concurred with Governor on all except $100 construction authority.	32,800,000
16. State Building Authority (SBA) Rent Adjustments. Gov. and Senate increased funding for SBA line item for State Agencies to reflect increased debt service costs. House did not include. Conference concurred with Senate.	1,700,000

Total Changes.....................................................................................................................		$47,401,500
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation.............................		$1,190,375,100
Amount Over/(Under) GF/GP Target: ($100)

FY 2013-14 TECHNOLOGY, MANAGEMENT, AND BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year to Date:

Items Included by the Senate and House

1. Statewide State-Owned Inventory System. Governor and Senate deleted current language requiring the Department to develop a plan regarding a Statewide State-owned inventory management system and submit this plan to the Legislature by February 1. The House retained. Conference concurred with Senate. (Sec. 803(5))

2. Vendor Call or Contact Centers. The Governor removed current year language requiring disclosure of location of call/contact centers. The Senate and House retained. (Sec. 817)

3. Unclassified Salaries. Language required the Department to compile a report by January 1 pertaining to the salaries of unclassified employees and gubernatorial appointees. Gov. removed this section. Senate and House retained. (Sec. 822)

Conference Agreement on Items of Difference

4. Motor Vehicle Fleet. House included language that was deleted by the Senate that requires the Department to maintain a plan regarding the number of vehicles assigned to each department, total number of cars in the fleet, and the number of miles driven each year. Conference concurred with House. (Sec. 813(3))

5. Privatization RFP Factors. House added new language stipulating that the DTMB shall include factors that will be used to evaluate and determine price related to requests for proposals issued for the purpose of privatization. Conference concurred. (Sec. 816)

6. Space Consolidation Plan. Governor and Senate removed current year language requiring the Department to develop a plan regarding the use of funds for consolidation of space in State-owned or leased facilities across the State. The House and Conference retained. (Sec. 821)

7. Former State Police Headquarters. Senate added exemption for FY 2010-11 funding for MSU asbestos abatement funds to be used to connect the former State Police Headquarters site to municipal sewer system. House did not include. Conference concurred with the Senate but with revised language. (Sec. 822c)

8. ICT Innovation Fund. House added new language stipulating that the Information, Communications, and Technology (ICT) Innovation Fund shall be administered by the Department for the purpose of providing a revolving, self-sustaining resource for financing ICT innovation projects for state agencies, local units of government, educational institutions, and nonprofit organizations, in addition to permitting outside contributions to the fund and carry forward of money within the fund. Conference concurred with House. (Sec. 831)

9. Required Reports. Senate retained language requiring DTMB to provide various detailed reports to JCOS and fiscal agencies with status of each planning or construction project financed with SBA funds. House did not include. Conference concurred with the Senate. (Sec. 862)

10. One-time Appropriations. Governor and Senate provided boilerplate language describing the qualification process for the new proposed Regional Prosperity Grant Program. House did not include. Conf. concurred with Senate. (Sec. 890)

11. Statement of Proposed Operating Cost. Senate retained language that requires operating costs to be included with submitted planning documents. The House did not include. Conference concurred with House.

12. Final Planning and Construction. Senate retained language that outlines certain administrative procedures required before community college or university projects can move to planning stage. House did not include. Conference concurred with House.

13. Match Requirements. Senate retained language that provides that the purpose, scope, and cost of a project may not be altered to meet match requirements. Language also states that any Federal matching funds shall be applied to the total authorized project cost. The House did not include. Conference concurred with House.

Date Completed: 5-27-13 Fiscal Analyst: Joe Carrasco, Jr.

FY 2013-14 TREASURY - DEBT SERVICE BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$140,554,900

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Water Pollution Control Bond and Interest Redemption. The Governor recommended a decrease of $921,400 GF/GP in the appropriation for debt service on these bonds. The appropriation would be $1,132,700 in FY 2013-14. This is expected to be the last year of debt service payments on these bonds. The Senate and House concurred.	(921,400)
Conference Agreement on Items of Difference
2. Great Lakes Water Quality Bond. The Governor recommended increasing appropriations for debt service payments by $9,411,500 GF/GP to $15,916,000 in FY 2013-14. This would cover debt service on existing bonds and the additional costs of a proposed $100.0 million bond issue. The Governor proposed using the bond proceeds for grants and loans to local governments for sanitary sewer and storm sewer improvements, stormwater management plans or programs, and establishing wetland mitigation banks. The voters approved the issuance of Great Lakes Water Quality Bonds in 2002. The Senate concurred. The House did not include debt service for a proposed new $100.0 million bond issue from existing bond authority approved by the voters in 2002. Conference concurred with the Senate.	9,411,500
3. Clean Michigan Initiative. The Governor recommended an increase in debt service of $2,886,500 to $57,187,400 GF/GP in FY 2013-14 to cover the cost of scheduled payments. The Senate concurred. The House reduced by $69,200. The Conference concurred with the Senate.	2,886,500
4. Quality of Life Bond. The Governor recommended an increasing the debt service line for this program to $79,965,800 in FY 2013-14. This consists of an increase in scheduled payments of $2,271,000 GF/GP and an addition $2.5 million GF/GP in a fund shift that replaces $2.5 million from the Refined Petroleum Fund. The Senate concurred. The House did not include the fund shift from Refined Petroleum Fund to GF/GP revenue. The Conference concurred with the Senate.	2,271,000

Total Changes.....................................................................................................................	$13,647,600
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$154,202,500
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 TREASURY - DEBT SERVICE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Items Included by the Senate and House

1. Boilerplate Changes. There are no boilerplate changes related to Treasury - Debt Service.

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

FY 2013-14 TREASURY - OPERATIONS BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$512,424,800

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Sales, Use, and Withholding System. The Governor recommended $1,763,300 in one-time GF/GP to develop system requirements for replacing the business tax registration and sales, use, and withholding IT systems. Total cost is estimated at $23.1 million over 3 years in the DTMB and Treasury budgets. The Senate and House concurred.	1,763,300
2. Digital Tobacco Stamps. The Governor recommended $3.0 million from tobacco tax revenue for the cost of implementing digital tax stamps for cigarettes. The Senate and House concurred.	3,000,000
3. Casino Gaming Control Board IT System. The Governor recommended a one-time appropriation of $3.0 million to replace IT systems. Funding would consist of $2.3 million from the Casino Gaming Fund and $700,000 from the State Services Fee Fund. The Senate and House concurred.	3,000,000
4. Payments in Lieu of Taxes (PILT). Governor increased PILT funding by $1,734,500 to provide full funding in compliance with 2012 PA 603 and 2012 PA 604. The Senate and House concurred.	1,734,500
5. Economic Adjustments. Includes $1,056,800 Gross and $158,500 GF/GP for OPEB and $6,186,600 Gross and $1,143,800 GF/GP for other economic adjustments.	7,243,400
6. Other Changes. The Governor recommended and the Senate and House concurred in the removal of one-time and supplemental funding of $20,742,700, transferring out $3.5 million, removing unrealized federal funds of $1,243,300, and information technology and fund source adjustments.	(24,598,900)
Conference Agreement on Items of Difference
7. Distressed Communities. The Governor recommended $5.0 million in one-time GF/GP funding for financial consulting services and emergency manager salaries for financially distressed communities. This offsets the removal of $5,780,000 in supplemental funding for FY 2012-13 provided in the Local Financial Stability and Choice Act, 2012 PA 436. The Senate concurred. The House did not include. Conference concurred with the Senate.	(780,000)
8. iLottery. The Governor increased funding by $3,350,000 and 10.0 FTEs for the implementation of lottery sales on the Internet. The Senate did not include. The House concurred with the Governor. The Conference did not include.	0
9. Operations Reductions. The Senate provided GF/GP appropriations for administrative and operations lines at the Governor's recommendation. The House made GF/GP reductions in many line items. These reductions totaled $277,000. Conference concurred with the Senate.	0
10. Dual Enrollment. Governor reduced funding for tuition payments for nonpublic school students dually enrolled in postsecondary courses from $10.0 million in FY 2012-13 to $1.0 million in FY 2013-14 based on previous reimbursement costs. Senate concurred. House reduced by $7,500. Conference concurred with the Senate.	(9,000,000)
11. Facility for Rare Isotope Beams (FRIB). Governor included $7.3 million GF/GP for debt service on the community share of this project in the MSF budget. Senate and House concurred. Conference included this funding in Treasury. The FY 2012-13 Treasury budget included FRIB funding of $2,339,900 making the increment $4,960,100.	4,960,100
12. Public Private Partnership. The Conference transferred this program to DTMB and removed $1,513,700 in spending authority.	(1,513,700)

Total Changes.....................................................................................................................		($14,191,300)
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation.............................		$498,233,500
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 TREASURY - OPERATIONS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Items Included by the Senate and House

1. Deleted Reports. The Governor recommended deleting the following reports: bond restructuring (Sec. 902a), cost of collections of unpaid taxes and loans (Sec. 903(3)), senior citizens' cooperative housing tax exemption audit report (Sec. 913(2)), public private partnership (Sec. 925(5)), costs of collections for State departments (Sec. 930(2)), restricted fund management fees (Sec. 931), Municipal Finance Authority unappropriated revenue and spending (Sec. 934(2)), and pension consultant report (Sec. 944). The Senate and House retained these sections.

Conference Agreement on Items of Difference

2. Assessor Certification and Training Fees. The Governor deleted the schedule of fees for property assessor examinations, initial certifications, and renewal fees and recommended that the State Tax Commission determine these fees annually. Current fees are set in boilerplate as follows: examination fee, $50; initial certification fee, $50; annual renewal fee for level 1 and 2 assessors, $75; and annual renewal fee for level 3 and 4 assessors, $125. Revenue from the fees is used to offset the costs of the training and certification program. The Senate concurred. The House retained the section. Conference limited examination fees to $50 and certification fees to $175. (Sec. 907)

3. Unclaimed Property Report. Governor deleted the report on private auditors used for unclaimed property audits and the revenue received. The Senate retained. The House deleted the section which provides spend and receive authority for revenue collected by private auditors, limit auditor reimbursement, and provides for a report. The Conference retained the section. (Sec. 919)

4. Public Private Partnership. The Governor deleted the current prohibition against support for the Detroit River International Crossing or any successor project by the Department or the Public Private Partnership Fund. The Senate and House maintained current law. Conference moved these sections to the DTMB budget. (Sec. 925 and 925a/Sec. 822 and 822e)

5. Dual Enrollment. The Governor added language that ties the appropriation to the statutory authority. The Senate did not include. The House concurred with the Governor. The Conference concurred with the House. (Sec. 935)

6. Lottery Information for Retailers. The Governor deleted a requirement for the Bureau of the State Lottery to inform retailers that cash on a Bridge Card cannot be used to purchase lottery tickets. The Senate concurred. The House retained. The Conference concurred with the House. (Sec. 963)

7. iLottery Prohibition. Senate added new language prohibiting the Bureau of State Lottery from expending any funds on iLottery. The House did not include. The Conference concurred with the House. (Sec. 963)

8. iLottery Limitation. The Senate did not authorize iLottery. The House limited iLottery to offering only those games in existence as of January 1, 2004. The Conference did not include. (Sec. 965).

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

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FY 2013-14 TREASURY - REVENUE SHARING BUDGET S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$1,087,251,000

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Constitutional Revenue Sharing. The Governor recommended an increase in constitutional revenue sharing payments of $29,450,200 or 4.1% based on the sales tax estimate from the January 2013 consensus revenue estimating conference (CREC). The Michigan Constitution requires the distribution of 15% of the sales tax revenue collected at a rate of 4% to cities, villages, and townships on a per capita basis. The Senate and House concurred. Conference included the revised estimate from the May 2013 CREC. Based on the new estimates, Constitutional revenue sharing is approximately $716,651,000 in FY 2012-13 and $737,257,700 in FY 2013-14, a 2.9% increase.	20,606,700
2. Competitive Grant Assistance Program. The Governor recommended funding this program at $15.0 million in FY 2013-14, the same amount as in the current year. This consists of $5.0 million in ongoing and $10.0 million in one-time appropriations. The Senate and House concurred.	0
Conference Agreement on Items of Difference
3. County Revenue Sharing. The Governor increased funding for county revenue sharing by $8.0 million to $112,480,000 in FY 2013-14. This would provide a 1.1% increase to existing recipients and cover the cost of a county projected to re-enter State-paid county revenue sharing program next year and the 11 counties that received part-year State payments in FY 2012-13 and will increase to full-year State-paid funding in FY 2013-14. County Revenue Sharing provides State payments to any county that has completed withdrawals from its revenue sharing reserve fund created by acceleration of property tax collections in 2005. The Senate increased funding by $12,128,000 to $116,608,000. This would provide a 4.8% increase and cover the cost of additional counties entering the program. House concurred with the Governor. Conference concurred with the Senate.	12,128,000
4. County Incentive Program. The Governor increased funding for the County Incentive Program by $2.0 million to provide a 1.1 % increase and to cover the cost of the additional counties that receive County Revenue Sharing and thus become eligible for the incentive program. The Senate increased by 4.8% to $29,152,000. This consists of $22,652,000 in ongoing appropriations and $6.5 million in one-time appropriations. The House concurred with the Governor. Conference concurred with the Senate.	3,032,000
5. Economic Vitality Incentive Program. The Governor continued funding for this program at $225.0 million in FY 2013-14, the same amount as in the current year. The Senate increased funding by 4.8% to $235,840,000. This consists of $226,340,000 in ongoing appropriations and $9.5 million in one-time funding. The House concurred with the Governor. Conference concurred with the Senate.	10,840,000

Total Changes.....................................................................................................................	$46,606,700
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................	$1,133,857,700
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 TREASURY - REVENUE SHARING BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Conference Agreement on Items of Difference

1. Economic Vitality Incentive Program (EVIP) and County Incentive Program. The Governor recommended changes to each of the incentive categories:

Category 1 - Accountability and Transparency: The Governor specified the requirements for the debt service report that is currently part of the budget report. This would consist of a statement of issuance dates, issuance amounts, and a listing of annual debt service payments. The Senate and House added the type of debt service instrument and funds dedicated for debt repayment. The House added monthly posting of salaries by job type, severance packages, and contracts over $25,000. Conference did not include the salary, contract, and severance reporting.

Category 2 - Consolidation of Services: The Governor required participants to report on the status of previous proposals and add a new proposal for consolidation, collaboration, or cooperation with potential savings and a timeline for implementation. The Senate did not require a new proposal for previous participants. It added options for innovation and privatization projects in the consolidation plan. The House and Conference concurred with the Governor. Conference specified that the timelines are estimated timelines and required the plan to be publicly available.

Category 3 - Employment Compensation: The Governor increased the requirements in this area to require that a recipient establish an employment compensation plan that meets the required criteria and comply with the requirements of the Publicly Funded Health Insurance Contribution Act, Public Act 152 of 2011. The compensation plan would have the same elements as in the current year in that it would be a plan that the local government intends to implement with any new, modified, or extended employee contract or employment agreement and would be required to comply with specific limits regarding retirement plans costs and multipliers. The Senate and House changed the category to Unfunded Accrued Liabilities and required participants to submit a plan to reduce unfunded accrued liabilities. The plan would be required to include a list of previous actions taken to reduce those liabilities with estimated cost savings and a detailed description of additional actions that could be taken.

Source of Flags. The Senate required cities, villages, townships, and counties to post on the Internet the country of origin of all flags purchased or displayed in order to qualify for EVIP or County Incentive Program payments. The House did not include. Conference concurred with the House. (Sec. 19-952/Sec. 952)

2. Competitive Grant Assistance Program (CGAP). The Governor recommended that $7.5 million of the $15.0 million appropriation be allocated for projects to combine public safety operations. He also recommended expanding eligibility to authorities that combine operations with a city, village, township, or county. The Senate and House did not include the proposed public safety earmark. The Senate expanded eligibility to authorities, public community colleges, and public universities that combine operations with a city, village, township, or county. The House expanded eligibility to universities and community colleges. Conference concurred with the Senate. (Sec. 19-951/Sec. 951)

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

FY 2013-14 TREASURY- STRATEGIC FUND AGENCY S.B. 194 (CR-1): CONFERENCE REPORT

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$984,234,400

Changes from FY 2012-13 Year-to-Date:
Items Included by the Senate and House
1. Pure Michigan. The Governor increased to $29.0 million to support international tourism marketing. The Senate and House concurred.	4,000,000
2. Economic Adjustments. Includes $365,500 Gross and $66,000 GF/GP for OPEB and $2,332,500 Gross and $409,500 GF/GP for other economic adjustments.	2,698,000
3. Other Changes. The Governor, Senate, and House added $1,730,700 in Federal GEAR-UP funding, removed $21,894,100 in unused Federal spending authority, removed one-time lump sum payments of $1,135,700, transferred $132,300 for the wage and hour unit to DLARA per E.O. 2012-9, and adjusted other fund sources.	(21,267,100)
Conference Agreement on Items of Difference
4. Business Attraction & Community Revitalization. Gov. increased by $20.0 million GF/GP to $120.0 million, of which $27.5 million was one-time funding. Senate increased by $10.0 million to $110.0 million, of which $17.5 million was one-time funding. House provided $66,983,000 in ongoing funding. Conf. provided $120.0 million of which $24.8 million is one-time and $95.2 million is ongoing.	20,000,000
5. Film Incentives. Gov. reduced from $50.0 million in one-time GF/GP in FY 2012-13 to $25.0 million in FY 2013-14. Senate maintained at $50.0 million in one-time funding. House did not include. Conference concurred with Senate.	0
6. Job Creation Services. Conference added $4,575,000 for special projects consisting of $2.0 million for the Kalamazoo Community College Health Living Program, $2.0 million for the Grand Rapids Public Museum, $370,000 for the Holland windmill, and $200,000 for refugee job training by the Chaldean Community Foundation. Conference also added $385,000 for operations.	4,960,000
7. Land Bank Fast Track Authority. Governor increased funding for the Land Bank by $14,109,800 and 16.0 FTEs. Senate funded at $13,642,600. House maintained current-year funding of $2,993,900. Conference did not include GF/GP for Land Bank and eliminated unrealized restricted funds.	(1,851,400)
8. Skilled Trades Training Program. Gov. recommended $10.0 million in one-time GF/GP for training grants to businesses. Senate set at $5.0 million in one-time GF/GP. House provided a boilerplate earmark. Conference concurred with the Governor	10,000,000
9. Innovation and Entrepreneurship. Governor increased from $25.0 million to $28.5 million. The Senate maintained the program at $25.0 million. House and Conference concurred with Governor.	3,500,000
10. Precollege Engineering. Governor did not include. Senate added $340,000 GF/GP for precollege programs in the engineering & sciences for Detroit and Grand Rapids. House did not include. Conference concurred with the Senate.	340,000
11. Arts and Cultural Grants. Gov. increased funding to $6,650,000. Senate maintained current year funding of $6,150,000. House increased to $7,150,000. Conference increased to $8,150,000.	2,000,000
12. Facility for Rare Isotope Beams (FRIB) Debt Service. Conference funded this project in Treasury-Operations.	0
13. Operations Reductions. House made GF/GP operations reductions of $253,400. Conference did not include.	0

Total Changes.....................................................................................................................	$24,379,500
FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation.............................	$1,008,613,900
Amount Over/(Under) GF/GP Target: $0

FY 2013-14 TREASURY - STRATEGIC FUND AGENCY BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

Items Included by the Senate and House

1. Van Andel Institute Allocation. The Governor deleted a $500,000 allocation to the Van Andel Institute for match for Federal research grants. The Senate and House retained. (Sec. 1034b)

2. FRIB. The Governor added requirements for issuance of bonds to fund FRIB construction. Prior to issuing bonds, the MSF and the State Budget Director must determine that all construction approvals have been obtained and Federal construction funds are available. The bond proceeds used for construction are limited to $90,960,100, the remaining amount of the community share. Funds would be distributed to MSU on a reimbursement basis. The State Budget Director would retain the authority and fiduciary responsibility necessary to protect the public's financial and policy interests. Any actions under that authority, such as rescinding payments, would be reported to the Legislature within 10 days of the exercise of that authority. The Senate and House concurred. (Sec. 1037)

Conference Agreement on Items of Difference

3. Limit on Fundraising Activities. The Governor expanded the prohibition on private fund raising by MEDC staff to apply to staff involved in the award of incentives, in addition to the current grants and tax abatements. The Senate concurred. House did not include. Conference concurred with the Senate. (Sec. 1013)

4. Allocation of Business Attraction Funding. The Governor revised the requirement on allocation of the appropriation for Business Attraction and Community Revitalization to state that $20.0 million must be granted for community revitalization. House maintained current language. The Senate and Conference modified to say that the $20.0 million is for brownfield and historic preservation projects in the community revitalization program. (Sec. 1024)

5. Business Incubators. Governor deleted new allocations for business incubators and accelerators. The Senate concurred and retained reporting language. House did not include. Conference concurred with Senate. (Sec. 1034)

6. Arts and Cultural Grant Administration. The Governor deleted the current $100,000 cap on use of funds from the arts grants line for program administration. The Senate prohibited use of the grant line for administration. House maintained the current $100,000 cap. Conference concurred with the Senate. (Sec. 1035)

7. Refugee Work Assistance. The Governor and House deleted previously vetoed language that allocated $200,000 for a refugee assistance and sustainability training program. The Senate retained as an allocation from the community ventures line. Conference removed language and funded from Job Creation Services.

8. Precollege Engineering. Governor and House deleted an allocation of $340,000 from the line item for Community Ventures to Precollege Program for precollege engineering and sciences programs in Detroit and Grand Rapids. The Senate and Conference retained funding at $340,000 in a separate line item. (Sec. 1053)

9. Transfer of GF/GP Appropriations to Other Funds. The Senate required the transfer of $50.0 million in GF/GP appropriations for film incentives to the Michigan Film Promotion Fund and stated that the funds are appropriated and available for expenditures from that fund. The House included the Governor's recommended language that directs that GF/GP appropriations for business attraction and community revitalization shall be transferred to the 21^st Century Jobs Trust Fund per MCL 125.2090b and requires that any film incentive appropriations be transferred to the Michigan Film Promotion Fund in compliance with MCL 125.2029d. Conference concurred with the House. (Sec. 1036)

10. Food and Agriculture Industry Growth Initiative Loan Program. The House stated its intent that $2.0 million of the funding for business attraction and community revitalization be used for a food and agriculture industry growth initiative loan program administered by the MSF and the Michigan Department of Agriculture and Rural Development. The Senate and Conference did not include.

11. Skilled Trades Training Program. House allocated $5.0 million from innovation and entrepreneurship for the Skilled Trades Training Program. Senate and Conference included a separate line. (Sec. 1039)

12. Use of State Accounting System. Conference required MSF to utilize a DTMB administrative accounting system used across State Government to track all financial transactions. (Sec. 1040)

13. Limit on Transfer of Funds. Conference provided that for the business attraction and community revitalization line, the MSF shall request the transfer by the State Treasurer of no more than 60% of the funds prior to April 1, 2014. (Sec. 1041)

Date Completed: 5-27-13 Fiscal Analyst: Elizabeth Pratt

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.